In this section, we look at the economic news affecting global markets this week.
- The latest ANZ-Roy Morgan Consumer Confidence Index fell to 115 from 116.4 in the week to November 26. Its fall was blamed on doubts over ongoing future economic conditions.
- Australian capex rose by 1% to $29.368 billion. The result was in line with forecasts. The fourth estimate for total CAPEX in the 2017/18 financial year rose to $108.9bn above the forecast revision of $105.4bn. It was in line with expectations.
- German business confidence rose in November to a seasonally adjusted 117.5 this month from a reading of 116.7 in October, beating forecasts for a drop to 116.6.
- The Euro hit a two-month high driven by a strong German business confidence reading. The Euro is trading around the US$1.19 mark.
- US sales of new single-family homes quickened for the second straight month in October. Sales of new homes rose 6.2% to an annual rate of 685,000 units. It was a beat on an expected 2.5% fall. It’s hit its highest point since the GFC and points to a sustained recovery in sales after a soft year. The increase was bolstered by the storm-damaged southern US, which continued to see robust sales. Its good news for stocks exposed to the US housing sector such as Boral and James Hardie.
- The Chinese PMI Index has beaten expectations coming in at 51.8 which was above an 51.4 in November, slower than 51.6 in October.
- China’s services sector also did well with its PMI reading increasing to 54.8 in November from the previous month’s 54.3.
- It seems the Chinese economy is doing better than first though and has been propped up by government infrastructure spending, a resilient property market and solid exports. It has helped China’s GDP move closer to 7% in the first nine months of 2017.